Coromandel holiday home rentals could be “taxed”
Investors with holiday home rentals in the Thames-Coromandel region beware! A new charge could be coming your way.
Thursday, March 12th 2015, 12:00AM
by Miriam Bell
In what is believed to be a first for the country, the Thames-Coromandel District Council is proposing a new fixed annual charge of $200+GST for short-term holiday home rentals.
However, the council’s proposal will only affect those advertising their holiday homes for short-term rental on commercial sites like Bookabach, TradeMe, and Bachcare – as well as small bed and breakfast operations.
This means that holiday homes which are not commercially advertised for rental would not be charged.
Under the council’s proposal, large B&B operations (of four or more bedrooms for hire) will be reclassified as commercial and will pay commercial economic development rate and pan charges as moteliers do.
Commercial operations will not have to pay the annual $200+GST charge on top of their other costs.
The proposal is part of the council’s Long Term Plan for 2015-2025, which it is currently consulting on.
The council’s rationale for the charge is that it will generate up to $252,000 per year which can be used for economic development of the area.
In turn, this will help to further boost the region’s tourism industry.
But the council also says it is about ensuring greater equity among short-term accommodation providers.
The Motel Association has long lobbied for such a charge.
Chief executive Michael Baines told media that other councils might consider doing something similar to reflect the fees that commercial providers have to pay.
If the proposal is adopted it will come into effect next summer.
*Submissions on the proposal are due by 9 April 2015.
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